DTC plans to float fresh tender for 1,000 buses

NEW DELHI: More than two years and multiple tenders later, the Delhi Transport Corporation state bus agency has decided to float another tender - this time for 1,000 buses. Said DTC Spokesman R S Minhas said, "The DTC board has approved the proposal to acquire 1,000 buses through a public tender. This will be floated once the cabinet clears the proposal."
According to officials, the proposal is for 1,000 low-floor non-AC buses.DTC at present has around 4,500 buses in its fleet. On ground though, only 3,800 ply every day. At least 800 buses are the older, standard-floor buses, which are fast heading for scrap. The transport utility has been trying to augment its fleet for several years now.
The Delhi government had, through DIMTS, come out with a global expression of interest (EoI) in November last year. Transport minister Gopal Rai had said that companies that showed interest in the EoI would be shortlisted for participating in the tender for 2,000 buses for the Delhi government. Part of this lot was also earmarked for DTC.
According to a source, the government now wants DTC to float separate a tender. "The penalty clause of the DTC contract has been modified to make the tender more attractive," added the source. DTC, as part of the contract conditions, levies penalties on the bus manufacturer for defects or problems found in the fleet. This was also a crucial reason for no bids being placed for DTC's previous tenders for buses that have been brought out in the past few years.
The state agency, in fact, has been trying to acquire buses for over two years now. Sources said that with the modifications in the penalty clause, DTC was hoping that more bus manufacturers would show interest in the tender. Last year, DTC had decided to do away with the annual maintenance contract (AMC), that was part of the tender conditions. Under the new tender, maintenance would be done by DTC, maintained the source.The approval by the DTC board will be followed by a cabinet note to be placed by the transport department. This will, thereafter, need to be cleared by the cabinet.
Interestingly, Rai has already announced that the government will make around 1,000 buses available in the public transport system by April this year, followed by another 1,000 in August. A premium service comprising 1,000 buses is also likely to be announced in November 2016.